Spartanburg County facing budget battle

Officials offer alternatives to across-board cuts

Published: Friday, June 14, 2013 at 3:15 a.m.

Last Modified: Saturday, June 15, 2013 at 1:44 a.m.

Employee health insurance premiums, layoffs, service reductions and tax increases will be at issue when Spartanburg County Council tackles third reading of a controversial budget Monday afternoon.

The budget process was turned on its head Wednesday when days before the final budget was scheduled for a vote, department heads were sent back to the drawing board and directed to cut 5 percent from their overall budgets. Proponents of the action said it was necessary to provide a long-term solution to skyrocketing health insurance costs resulting from increased claims, but detractors — including many department heads — said the cut could cripple Spartanburg County services.

Just before 5 p.m. Friday, a coalition of county-elected officials sent a letter to council outlining targeted cuts that could serve as an alternative to the across-the-board 5 percent reduction that would strike $4 million from the county's current $82 million budget.

County Auditor Sharon West said many officials worked together to draft a solution that would reduce the county's fiscal crisis without raising taxes or eliminating jobs. Officials declined to discuss their recommendations on Friday and insisted council be able to consider the proposal before making it public.

After second reading of the budget, county employees were slated to shoulder a hike to health insurance premiums totaling nearly $1 million. The increases ranged from an additional $21.78 for the 565 employees utilizing single coverage to an additional $158 for the 211 using family coverage.

County Administrator Katherine Hubbard presented a plan at a special called meeting Wednesday to cut the increase in half by trimming the operating budget by 3.5 percent and reducing outside agency funding. Some council members supported the plan as one that would give them time to find a lasting solution, but others said it would only postpone more difficult decisions and tax employees who are not receiving pay raises this year.

“Nothing that we looked at did anything but put a patch on it,” said Councilman O'Neal Mintz who proposed the 5 percent cut and was supported by council members Jeff Horton, Jane Hall, and Michael Brown.

The $4 million cut would eliminate health insurance increases for employees, fund renovations and a new employee in the probate court. It also would create a $3 million escrow fund to defray future health care costs.

Mintz said his dramatic motion for the 5 percent across-the-board cut came late in the budget process because he hoped a better solution could be found.

The 4-3 decision, with councilmen David Britt, Roger Nutt and Dale Culbreth dissenting, sent county officials scrambling to rework their budgets. Late Friday afternoon, Hubbard said third reading of the budget is still scheduled for Monday, but she did not yet have all the budget data from individual departments.

Mintz said Friday he wasn't sure if the council would be able to pass a budget on Monday.

The 4-3 vote for the 5 percent cut represents a tenuous alliance. After the meeting, Brown said he didn't think a 5 percent cut was ideal but that it was the best of two options before the council at the time. Horton, Hall and Brown have all voiced an interest in examining a tax increase of inflation plus growth as an alternative to further budget cuts.

“I don't have the slightest idea what might happen Monday,” Mintz said. “I think we'll be lucky to get a budget passed.”

State statute requires the county have a balanced fiscal plan in place by July 1.

Mintz said dramatic action was necessary to relieve county employees of burdensome health insurance premium hikes and prevent reoccurrence of the problem year after year. He said it also highlights the precarious position Spartanburg County is in as a result of the underfunding of local governments by the state government.

Council members who opposed the action said they were shocked by its mere proposal and called it “unprecedented,” “reckless,” and “poor policy.”

“I don't think they have a clue the devastation that will be done to the citizens of Spartanburg County,” said Councilman David Britt. “What they did is if you get a splinter in your hand and use a chainsaw to cut it off.”

Department heads, who had already been asked to cut their proposed budgets twice since planning for fiscal year 2014 began in January, said absorbing the cuts would have a significant negative impact on services. In the auditor, clerk of court and probate court offices alone, seven positions are on the chopping block. Personnel cuts in other departments are also likely.

“I'm hoping they will reconsider,” Clerk of Court Hope Blackley said. “If this actually goes through, it will mean a major decrease in customer services and work flow.”

Blackley has three positions open in her office now she was interviewing to fill in the coming budget year when news of the 5 percent cut came. Holding the positions vacant is one of her possible solutions to trimming her budget by 5 percent, but it is going to mean slower processing of all court business, including mailing checks and scheduling court appearances.

“At any rate, services are going to be reduced and people are not going to be happy,” she said.

<p>Employee health insurance premiums, layoffs, service reductions and tax increases will be at issue when Spartanburg County Council tackles third reading of a controversial budget Monday afternoon.</p><!-- Nothing to do. The paragraph has already been output --><p>The budget process was turned on its head Wednesday when days before the final budget was scheduled for a vote, department heads were sent back to the drawing board and directed to cut 5 percent from their overall budgets. Proponents of the action said it was necessary to provide a long-term solution to skyrocketing health insurance costs resulting from increased claims, but detractors — including many department heads — said the cut could cripple Spartanburg County services.</p><p>Just before 5 p.m. Friday, a coalition of county-elected officials sent a letter to council outlining targeted cuts that could serve as an alternative to the across-the-board 5 percent reduction that would strike $4 million from the county's current $82 million budget.</p><p>County Auditor Sharon West said many officials worked together to draft a solution that would reduce the county's fiscal crisis without raising taxes or eliminating jobs. Officials declined to discuss their recommendations on Friday and insisted council be able to consider the proposal before making it public.</p><p>After second reading of the budget, county employees were slated to shoulder a hike to health insurance premiums totaling nearly $1 million. The increases ranged from an additional $21.78 for the 565 employees utilizing single coverage to an additional $158 for the 211 using family coverage. </p><p>County Administrator Katherine Hubbard presented a plan at a special called meeting Wednesday to cut the increase in half by trimming the operating budget by 3.5 percent and reducing outside agency funding. Some council members supported the plan as one that would give them time to find a lasting solution, but others said it would only postpone more difficult decisions and tax employees who are not receiving pay raises this year.</p><p>“Nothing that we looked at did anything but put a patch on it,” said Councilman O'Neal Mintz who proposed the 5 percent cut and was supported by council members Jeff Horton, Jane Hall, and Michael Brown. </p><p>The $4 million cut would eliminate health insurance increases for employees, fund renovations and a new employee in the probate court. It also would create a $3 million escrow fund to defray future health care costs.</p><p>Mintz said his dramatic motion for the 5 percent across-the-board cut came late in the budget process because he hoped a better solution could be found.</p><p>The 4-3 decision, with councilmen David Britt, Roger Nutt and Dale Culbreth dissenting, sent county officials scrambling to rework their budgets. Late Friday afternoon, Hubbard said third reading of the budget is still scheduled for Monday, but she did not yet have all the budget data from individual departments.</p><p>Mintz said Friday he wasn't sure if the council would be able to pass a budget on Monday.</p><p>The 4-3 vote for the 5 percent cut represents a tenuous alliance. After the meeting, Brown said he didn't think a 5 percent cut was ideal but that it was the best of two options before the council at the time. Horton, Hall and Brown have all voiced an interest in examining a tax increase of inflation plus growth as an alternative to further budget cuts.</p><p>“I don't have the slightest idea what might happen Monday,” Mintz said. “I think we'll be lucky to get a budget passed.”</p><p>State statute requires the county have a balanced fiscal plan in place by July 1.</p><p>Mintz said dramatic action was necessary to relieve county employees of burdensome health insurance premium hikes and prevent reoccurrence of the problem year after year. He said it also highlights the precarious position Spartanburg County is in as a result of the underfunding of local governments by the state government.</p><p>Council members who opposed the action said they were shocked by its mere proposal and called it “unprecedented,” “reckless,” and “poor policy.”</p><p>“I don't think they have a clue the devastation that will be done to the citizens of Spartanburg County,” said Councilman David Britt. “What they did is if you get a splinter in your hand and use a chainsaw to cut it off.”</p><p>Department heads, who had already been asked to cut their proposed budgets twice since planning for fiscal year 2014 began in January, said absorbing the cuts would have a significant negative impact on services. In the auditor, clerk of court and probate court offices alone, seven positions are on the chopping block. Personnel cuts in other departments are also likely.</p><p>“I'm hoping they will reconsider,” Clerk of Court Hope Blackley said. “If this actually goes through, it will mean a major decrease in customer services and work flow.”</p><p>Blackley has three positions open in her office now she was interviewing to fill in the coming budget year when news of the 5 percent cut came. Holding the positions vacant is one of her possible solutions to trimming her budget by 5 percent, but it is going to mean slower processing of all court business, including mailing checks and scheduling court appearances.</p><p>“At any rate, services are going to be reduced and people are not going to be happy,” she said.</p>